Bill Discounting: Strengthening Businesses Through TReDS
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Regular and timely cash flow keeps any business afloat. But long payment cycles can pin down growth and expansion. Bill discounting is a financial tool that ensures businesses access liquidity by converting invoices into instant cash. To streamline this process, RBI mandated TReDS for enterprises and MSMEs, significantly enhancing speed, ease, and transparency.
Basics Of Bill Discounting
Bill discounting allows businesses to sell their unpaid invoices to banks and NBFCs at a discounted rate. Rather than asking. buyers to clear the payments early, sellers can instantly access funds, ensuring smooth business operations.
The TReDS platform (Trade Receivables Discounting System), being RBI-regulated, has digitised and streamlined this process, allowing businesses the option to choose from multiple financiers and get the best financing option through a competitive bidding system.
Working Principle Of TReDS Bill Discounting
The TReDS platform is RBI-regulated marketplace that connects MSMEs, corporates, and financiers. Here’s how it works:
Reasons To Choose TReDS Bill Discounting
Faster Payments
Collateral-Free Funding
Transparent Bidding Process
Low Interest Rates
Boost Cash Flow
Beneficiaries Of Bill Discounting on TReDS
MSMEs & Small Businesses
Instant cash without the hassle of traditional loans.
Suppliers & Vendors
Ensure uninterrupted supply chain financing.
Large Corporates
Strengthen business relationships by supporting supplier liquidity.
Financial Institutions
Securely invest in trade receivables with guaranteed buyer repayments.
TReDS: Better Than Traditional Bill Discounting
The TReDS platform offers several advantages over traditional discounting methods:
Regulated & Transparent
RBI regulations ensure transparent bidding.
100% Digital & Paperless
No paperwork.
Multiple Financiers = Better Rates
Competitive bidding brings best deals for sellers.
Financiers
